The Czech Republic is undoubtedly the most developed country in the Central and Eastern European region. The country has a thriving economy and houses head offices of several international companies. Today, more than 150,000 Czech companies across all high-growth sectors are partially or entirely funded by Foreign Direct Investment (FDI). The National Bank of the country estimates the FDI at US$ 77B in the previous decade alone.
The fundamental reason behind these staggering FDI figures is the government’s incentives for investment. It started back in 1998 when new business policies were introduced. This action stimulated FDI, and at one point in time during the last decade, it reached a record high where the US and EU were the key players in the market.
Other key reasons why investors choose Czechia for investment are:
- Healthy credit ratings
- Policies that are conducive to trade and business
- Incentives for investors
- Simple visa and immigration process
- Ideal business conditions & trade routes
If you plan to invest in the Czech Republic, we suggest you highlight areas and sectors that are safe and high-yielding. We have listed some of the areas that attract investors and may work out for you too.
Manufacturing
The manufacturing sector consists of high-tech engineering products, machines, automobile parts, and automation. The share of this sector in the total economy of the country is nearly 33%. The automobile manufacturing companies are mostly foreign-owned; big names such as Hyundai, Daewoo, Toyota, Volkswagen, etc., have state-of-the-art manufacturing plants in Czech.
Although the investment here is high, and usually not undertaken by small investors, a component or service in the entire manufacturing line can be offered as the requirement for such is already present in the market. One needs to be innovative and competitive to enter the market.
Agriculture
Food is one thing that can never go out of fashion. Whether it’s the front end, where prepared food is sold to consumers, or the back end that deals with the raw material and production. With the rapidly changing climate and loss of agricultural lands, the Czech government has incentivized the agriculture sector to encourage more people to become growers.
Modern agriculture methods have been introduced and lands for farming purposes have been subsidized by the state to ensure that the produce is in abundance as well as competitive in price.
Startups
Cloud-based applications that make lives easier and give connectivity to established systems on the go are something in demand worldwide. The same is the case with Czechia too; with lots of scope for freelance developers and IT specialists. Information security and online banking are other areas where computer skills come in handy, and if you fall in this category this could be a low-cost startup avenue for you. The government even supports such individuals and firms that offer application-based solutions in form of tax relaxation, ease in immigration, etc.
Space tech
In the November of 2021 at the Czech Space Week festival, the Ministry of Transportation consolidated the government’s ambition to conquer newer frontiers in space technology. The ministry plans to launch its independent space flight in the near future. For this purpose, experts, students, teachers, and space enthusiasts were invited to discuss the possibilities and opportunities on the space exploration front.
Space tech is a rather new field in the country and is majorly in the discussion phase currently. However, the prospect seems promising as most of the technology and resources required for the development stage are already present in the country. An early entry into the space odyssey is sure to reap long-term benefits.
To summarize, after the initial period of lockdown due to the pandemic, things have started to pick up economically for the Czech Republic. A great deal of investment has been witnessed in the IT sector especially as “work from home” has become the new normal. Many companies continue to allow employees to work remotely in lieu of saving costs. E-commerce has grown exponentially over the last year as people observe social distancing protocols.
